75R8484 JJT-F                           

         By Chisum                                             H.B. No. 3463

         Substitute the following for H.B. No. 3463:

         By Allen                                          C.S.H.B. No. 3463

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the inspection and maintenance of certain motor

 1-3     vehicles for air pollution control; providing criminal penalties.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 382.037(d), Health and Safety Code, is

 1-6     amended to read as follows:

 1-7           (d)  On adoption of a resolution by the commission and after

 1-8     proper notice, the Department of Public Safety of the State of

 1-9     Texas shall implement a system that requires, as a condition of

1-10     obtaining a safety inspection certificate issued under Chapter 548,

1-11     Transportation Code [Section 140 or 141, Uniform Act  Regulating

1-12     Traffic on Highways (Article 6701d, Vernon's Texas Civil

1-13     Statutes)], in a county that is included in a vehicle emissions

1-14     inspection and maintenance program under Subchapter F of that

1-15     chapter [Section 142, Uniform Act Regulating Traffic on Highways

1-16     (Article 6701d, Vernon's Texas Civil Statutes)], that the vehicle,

1-17     unless the vehicle is not covered by the system, be annually or

1-18     biennially inspected under the vehicle emissions inspection and

1-19     maintenance program as required by the state's [Texas] air quality

1-20     state implementation plan [or Section 382.0371].  The Department of

1-21     Public Safety shall implement such a system when it is required by

1-22     any provision of federal or state law, including any provision of

1-23     the state's [Texas] air quality state implementation plan.  [The

1-24     Department of Public Safety may not require or accept verification

 2-1     of compliance other than a vehicle inspection certificate.]

 2-2           SECTION 2.  Subchapter A, Chapter 502, Transportation Code,

 2-3     is amended by adding Section 502.009 to read as follows:

 2-4           Sec. 502.009.  MOTOR VEHICLE EMISSIONS INSPECTION AND

 2-5     MAINTENANCE REQUIREMENTS.  (a)  The department shall ensure

 2-6     compliance with the motor vehicle emissions inspection and

 2-7     maintenance program through a vehicle inspection sticker-based

 2-8     enforcement system except as provided by this section.  Subsections

 2-9     (b)-(e) apply only if the United States Environmental Protection

2-10     Agency determines that the state has not demonstrated, as required

2-11     by 40 C.F.R. Section 51.361, that sticker-based enforcement of the

2-12     program is more effective than registration-based enforcement and

2-13     gives the Texas Natural Resource Conservation Commission or the

2-14     governor written notification that the reregistration-based

2-15     enforcement of the program, as described by those subsections, will

2-16     be required.  If Subsections (b)-(e) are made applicable as

2-17     provided by this subsection, the department shall terminate

2-18     reregistration-based enforcement of the program under those

2-19     subsections, on the date the United States Environmental Protection

2-20     Agency gives the Texas Natural Resource Conservation Commission or

2-21     a person the commission designates written notification that

2-22     reregistration-based enforcement is not required for the state

2-23     implementation plan.

2-24           (b)  The department may not register a motor vehicle if the

2-25     department receives from the Texas Natural Resource Conservation

2-26     Commission or the Department of Public Safety notification that the

2-27     registered owner of the vehicle has not complied with Subchapter F,

 3-1     Chapter 548.

 3-2           (c)  The county tax assessor-collector may not register a

 3-3     vehicle denied registration under Subsection (b) unless the tax

 3-4     assessor-collector has verification that the registered vehicle

 3-5     owner is in compliance with Subchapter F, Chapter 548.

 3-6           (d)  The department, the Texas Natural Resource Conservation

 3-7     Commission, and the Department of Public Safety shall enter an

 3-8     agreement regarding the responsibilities for costs associated with

 3-9     implementing this section.

3-10           (e)  A county tax assessor-collector is not liable to any

3-11     person for refusing to register a motor vehicle because of the

3-12     person's failure to provide verification of the person's compliance

3-13     with Subchapter F, Chapter 548.

3-14           SECTION 3.  Section 548.001, Transportation Code, is amended

3-15     to read as follows:

3-16           Sec. 548.001.  DEFINITIONS.  In this chapter:

3-17                 (1)  "Commercial motor vehicle" means a self-propelled

3-18     or towed vehicle, other than a farm vehicle with a gross weight,

3-19     registered weight, or gross weight rating of less than 48,000

3-20     pounds, that is used on a public highway to transport passengers or

3-21     cargo if:

3-22                       (A)  the vehicle or combination of vehicles has a

3-23     gross weight, registered weight, or gross weight rating of more

3-24     than 26,000 pounds;

3-25                       (B)  the vehicle is designed to transport more

3-26     than 15 passengers, including the driver; or

3-27                       (C)  the vehicle is used to transport hazardous

 4-1     materials in a quantity requiring placarding by a regulation issued

 4-2     under the Hazardous Materials Transportation Act (49 U.S.C. Section

 4-3     1801 et seq.).

 4-4                 (2)  "Commission" means the Public Safety Commission.

 4-5                 (3)  "Conservation commission" means the Texas Natural

 4-6     Resource Conservation Commission.

 4-7                 (4)  "Department" means the Department of Public

 4-8     Safety.

 4-9                 (5)  "Farm vehicle" has the meaning assigned by the

4-10     federal motor carrier safety regulations.

4-11                 (6) [(5)]  "Federal motor carrier safety regulation"

4-12     has the meaning assigned by Section 549.001.

4-13                 (7) [(6)]  "Inspection station" means a facility

4-14     certified to conduct inspections of vehicles under this chapter.

4-15                 (8) [(7)]  "Inspector" means an individual certified to

4-16     conduct inspections of vehicles under this chapter.

4-17                 (9)  "Nonattainment area" means an area so designated

4-18     within the meaning of Section 107(d) of the Clean Air Act (42

4-19     U.S.C. Section 7407).

4-20           SECTION 4.  Section 548.251, Transportation Code, is amended

4-21     to read as follows:

4-22           Sec. 548.251.  DEPARTMENT TO PROVIDE INSPECTION CERTIFICATES

4-23     AND VERIFICATION FORMS.  The department shall provide serially

4-24     numbered inspection certificates and verification forms to

4-25     inspection stations.  The department may issue a unique inspection

4-26     certificate for:

4-27                 (1)  a commercial motor vehicle inspected under Section

 5-1     548.201; or

 5-2                 (2)  a vehicle inspected under Subchapter F [Section

 5-3     548.301(a)].

 5-4           SECTION 5.  Section 548.301, Transportation Code, is amended

 5-5     to read as follows:

 5-6           Sec. 548.301.  COMMISSION TO ESTABLISH PROGRAM.  (a)  The

 5-7     commission shall establish a motor vehicle emissions inspection and

 5-8     maintenance program for vehicles as [registered in a county for

 5-9     which the conservation commission has adopted a resolution

5-10     requesting the department to establish such a program if:]

5-11                 [(1)  the county does not meet the national ambient air

5-12     quality standards for ozone, carbon monoxide, or another

5-13     vehicle-related pollutant; or]

5-14                 [(2)  the program is] required [in the county] by any

5-15     law of the United States or[, including] the state's [Texas] air

5-16     quality state implementation plan.

5-17           (b)  The commission by rule may establish a motor vehicle

5-18     emissions inspection and maintenance program for vehicles specified

5-19     by the conservation commission [registered] in a  county for which

5-20     the conservation commission has adopted a resolution requesting the

5-21     commission [department] to establish such a program and for which

5-22     the county and the municipality with the largest population in the

5-23     county by resolution have formally requested a proactive air

5-24     quality plan consisting of such a program.

5-25           (c)  A program established under Subsection (b) may not

5-26     include reregistration-based [registration-based] enforcement

5-27     unless the county by resolution requests reregistration-based

 6-1     enforcement [Texas Department of Transportation includes the

 6-2     program in its registration enforcement system].

 6-3           (d)  A vehicle emissions inspection under this section may be

 6-4     performed by the same facility that performs a safety inspection if

 6-5     the facility is authorized and certified by the department to

 6-6     perform the vehicle emissions inspection and certified by the

 6-7     department to perform the safety inspection.

 6-8           SECTION 6.  Section 548.302, Transportation Code, is amended

 6-9     to read as follows:

6-10           Sec. 548.302.  COMMISSION TO ADOPT STANDARDS.  The commission

6-11     shall:

6-12                 (1)  adopt standards for emissions-related inspection

6-13     criteria consistent with requirements of the United States and the

6-14     conservation commission applicable to a county in which a program

6-15     is established under this subchapter; and

6-16                 (2)  develop and impose requirements necessary to

6-17     ensure that an inspection certificate is not issued to a vehicle

6-18     subject to a program established under this subchapter unless the

6-19     vehicle has passed a motor vehicle emissions inspection at a

6-20     facility authorized and certified by the department [Section

6-21     548.301].

6-22           SECTION 7.  Section 548.303, Transportation Code, is amended

6-23     to read as follows:

6-24           Sec. 548.303.  PROGRAM ADMINISTRATION.  [(a)]  The commission

6-25     shall administer the motor vehicle emissions inspection and

6-26     maintenance program under this subchapter [until the date a vehicle

6-27     emissions inspection program administered by the conservation

 7-1     commission is implemented under the Clean Air Act].

 7-2           [(b)  The executive director of the conservation commission

 7-3     shall notify the commission of the date the conservation

 7-4     commission's program will become effective.]

 7-5           SECTION 8.  Section 548.304, Transportation Code, is amended

 7-6     to read as follows:

 7-7           Sec. 548.304.  STATIONS LICENSED TO CONDUCT EMISSIONS

 7-8     INSPECTIONS [REINSPECTIONS].  (a)  The department [conservation

 7-9     commission] may authorize and certify [license] inspection stations

7-10     as necessary to implement the emissions-related inspection

7-11     [reinspection] requirements of the motor vehicle emissions

7-12     inspection and maintenance program established under this

7-13     subchapter if the station meets the department's certification

7-14     requirements [Section 548.301].

7-15           (b)  The [At the request of the conservation commission, the]

7-16     department shall provide inspection certificates for distribution

7-17     and issuance at inspection [centralized reinspection] stations

7-18     certified [licensed] by the department [conservation commission].

7-19           [(c)  Notwithstanding Section 548.053(a), if an

7-20     emissions-related inspection under Section 548.301 discloses the

7-21     necessity for adjustment, correction, or repair, the conservation

7-22     commission may by rule require that the vehicle be reinspected at a

7-23     specified inspection station authorized and licensed by the

7-24     conservation commission to ensure that the emissions-related

7-25     adjustment, correction, or repair is made.]

7-26           SECTION 9.  Subchapter F, Chapter 548, Transportation Code,

7-27     is amended by adding Section 548.306 to read as follows:

 8-1           Sec. 548.306.  EXCESSIVE MOTOR VEHICLE EMISSIONS.  (a)  This

 8-2     section applies to a motor vehicle registered in:

 8-3                 (1)  a county or a portion of a county designated by

 8-4     department rule in accordance with standards provided by the United

 8-5     States Environmental Protection Agency; or

 8-6                 (2)  one of the following areas:

 8-7                       (A)  the part of the Dallas/Fort Worth ozone

 8-8     nonattainment area that consists of Collin, Dallas, Denton, and

 8-9     Tarrant counties;

8-10                       (B)  the part of the El Paso ozone nonattainment

8-11     area that consists of El Paso County; or

8-12                       (C)  the part of the Houston/Galveston ozone

8-13     nonattainment area that consists of Brazoria, Chambers, Fort Bend,

8-14     Galveston, Harris, Liberty, Montgomery, and Waller counties.

8-15           (b)  The registered owner of a motor vehicle commits an

8-16     offense if the vehicle, in an area described by Subsection (a),

8-17     emits:

8-18                 (1)  hydrocarbons, carbon monoxide, or nitrogen oxide

8-19     in an amount that is excessive under United States Environmental

8-20     Protection Agency standards or standards provided by department

8-21     rule; or

8-22                 (2)  another vehicle-related pollutant that is listed

8-23     by a department rule adopted to comply with Part A, National

8-24     Emission Standards Act (42 U.S.C. Sections 7602-7619), or rules of

8-25     the United States Environmental Protection Agency in an amount

8-26     identified as excessive under that rule.

8-27           (c)  The department shall provide a notice of violation to

 9-1     the registered owner of a vehicle that is detected  violating

 9-2     Subsection (b).  The notice of violation must be made by personal

 9-3     delivery to the registered owner or by mailing the notice to the

 9-4     registered owner at the last known address of the owner.  The

 9-5     department shall include in the notice the date and location of the

 9-6     violation detected and instructions for the registered owner

 9-7     explaining how the owner must proceed to obtain and pass a

 9-8     verification emissions inspection and to make any repair to the

 9-9     vehicle necessary to pass the inspection.  Notice by mail is

9-10     presumed delivered on the 10th day after the date the notice is

9-11     deposited in the mail.

9-12           (d)  A registered owner of a vehicle commits an offense if:

9-13                 (1)  notice is delivered to the owner under Subsection

9-14     (c); and

9-15                 (2)  the owner fails to comply with any provision of

9-16     the notice before the 31st day after the date the notice is

9-17     delivered.

9-18           (e)  An offense under this section is a misdemeanor

9-19     punishable by a fine of not less than $1 and not more than $350.

9-20     If a person has previously been convicted of an offense under this

9-21     section, an offense under this section is a misdemeanor punishable

9-22     by a fine of not less than $200 and not more than $1,000.

9-23           (f)  It is an affirmative defense to an offense under this

9-24     section that the registered owner of the vehicle, before the 31st

9-25     day after the date the owner receives a notice of violation:

9-26                 (1)  after a verification emissions inspection

9-27     indicated that the vehicle did not comply with applicable emissions

 10-1    standards, repaired the vehicle as necessary and passed another

 10-2    verification emissions inspection; and

 10-3                (2)  has complied with rules of the department

 10-4    concerning a violation under this section.

 10-5          (g)  The department may contract with a private person to

 10-6    implement this section.  The person must comply with terms,

 10-7    policies, rules, and procedures the department adopts to administer

 10-8    this section.

 10-9          (h)  The Texas Department of Transportation may deny

10-10    reregistration of a vehicle if the registered owner of the vehicle

10-11    has received notification under Subsection (c) and the vehicle has

10-12    not passed a verification emissions inspection.

10-13          SECTION 10.  Section 548.405, Transportation Code, is amended

10-14    to read as follows:

10-15          Sec. 548.405.  [CAUSE FOR] DENIAL, REVOCATION, OR SUSPENSION

10-16    OF CERTIFICATE.  (a)  The department may deny a person's

10-17    application for a certificate, revoke or suspend the certificate of

10-18    a  person, [an] inspection station, or inspector, place on

10-19    probation a person who holds a suspended certificate, or reprimand

10-20    a person who holds a certificate if:

10-21                (1)  the station or inspector conducts an inspection or

10-22    issues a certificate:

10-23                      (A)  in violation of this chapter [Section

10-24    548.004(c) or Section 548.104]; or

10-25                      (B)  without complying with the requirements of

10-26    this chapter; [subchapter or of Subchapter H; or]

10-27                (2)  the person, [at the] station, or [the] inspector[:]

 11-1                      [(A)]  commits an offense under this chapter;

 11-2                (3)  the applicant or certificate holder does not meet

 11-3    the standards for certification under this chapter or a rule

 11-4    adopted under this chapter;

 11-5                (4)  the station or inspector does not maintain the

 11-6    qualifications for certification or does not comply with a

 11-7    certification requirement under Subchapter G;

 11-8                (5)  the certificate holder or the certificate holder's

 11-9    agent, employee, or representative commits an act or omission that

11-10    would cause denial, revocation, or suspension of a certificate to

11-11    an individual applicant or certificate holder;

11-12                (6)  the station or inspector does not pay a fee

11-13    required by Subchapter H; or

11-14                (7)  the inspector or owner of an inspection station is

11-15    convicted of a:

11-16                      (A)  felony or Class A or Class B misdemeanor;

11-17                      (B)  similar crime under the jurisdiction of

11-18    another state or the federal government that is punishable to the

11-19    same extent as a felony or a Class A or Class B misdemeanor in this

11-20    state; or

11-21                      (C)  crime under the jurisdiction of another

11-22    state or the federal government that would be a felony or a Class A

11-23    or Class B misdemeanor if the crime were committed in this state

11-24    [Section 548.603; or]

11-25                      [(B)  falsely and fraudulently represents to a

11-26    vehicle owner or operator that equipment required to be inspected

11-27    must be repaired, adjusted, or replaced before the vehicle will

 12-1    pass inspection].

 12-2          (b)  For purposes of Subsection (a)(7), a person is convicted

 12-3    of an offense if a court enters against the person an adjudication

 12-4    of the person's guilt, including an order of probation or deferred

 12-5    adjudication.

 12-6          (c)  If the department suspends a certificate because of a

 12-7    violation of Subchapter F, the suspension must be for a period of

 12-8    not less than six months.

 12-9          (d)  Until an inspector or inspection station whose

12-10    certificate is suspended or revoked receives a new certificate, has

12-11    the certificate reinstated, or has the suspension expire, the

12-12    inspector or station may not be directly or indirectly involved in

12-13    an inspection operation [The director may deny an application for

12-14    certification, revoke or suspend the certificate of an inspection

12-15    station or inspector, place on probation the holder of a suspended

12-16    certificate, or reprimand the certificate holder for any of the

12-17    following reasons:]

12-18                [(1)  proof of unfitness of an applicant or certificate

12-19    holder under standards set out in this chapter or commission rules;]

12-20                [(2)  material misrepresentation in an application or

12-21    other information filed under this chapter or commission rule;]

12-22                [(3)  failure to maintain the qualifications for

12-23    certification;]

12-24                [(4)  issuance of an inspection certificate without

12-25    being certified;]

12-26                [(5)  issuance of an inspection certificate without

12-27    having made an inspection of the vehicle or without an adjustment,

 13-1    correction, or repair having been made after an inspection

 13-2    disclosed the necessity for the adjustment, correction, or repair;]

 13-3                [(6)  knowing or wilful issuance of an inspection

 13-4    certificate for a vehicle without each required item of inspection

 13-5    or with an item that was not in good condition and in compliance

 13-6    with state law and commission rules;]

 13-7                [(7)  refusal to allow the owner of a vehicle to have a

 13-8    required adjustment or correction made by a qualified person the

 13-9    owner chooses;]

13-10                [(8)  the charging of more than the authorized

13-11    inspection fee;]

13-12                [(9)  an act or omission by the certificate holder or

13-13    the holder's agent, employee, or representative that would cause

13-14    denial, revocation, or suspension of a certificate to the

13-15    individual applicant or certificate holder; or]

13-16                [(10)  wilful failure to comply with this chapter or a

13-17    rule adopted under this chapter].

13-18          SECTION 11.  Section 548.407, Transportation Code, is amended

13-19    to read as follows:

13-20          Sec. 548.407.  HEARING ON [BEFORE] DENIAL, REVOCATION, OR

13-21    SUSPENSION OF CERTIFICATE.  (a)  Before [Not earlier than the 31st

13-22    day  before the date] an application for certification as an

13-23    inspection station or inspector is denied [or a certificate is

13-24    revoked or suspended], the director or a person the director

13-25    designates shall give [notify] the person written notification [,

13-26    in  writing, in person, or by certified mail to the last address

13-27    given to the department by the person,] of:

 14-1                (1)  the proposed [impending] denial [, revocation, or

 14-2    suspension];

 14-3                (2)  each reason for the proposed denial [action]; and

 14-4                (3)  the person's right to an administrative hearing to

 14-5    determine whether the evidence warrants the denial [action].

 14-6          (b)  Before a certificate of appointment as an inspector or

 14-7    inspection station is revoked or suspended, the director or a

 14-8    person the director designates shall give written notification to

 14-9    the inspector or inspection station of the revocation or the period

14-10    of suspension.  The notice shall include:

14-11                (1)  the effective date of the revocation or the period

14-12    of the suspension, as applicable;

14-13                (2)  each reason for the revocation or suspension; and

14-14                (3)  a statement explaining the person's right to an

14-15    administrative hearing to determine whether the evidence warrants

14-16    the revocation or suspension.

14-17          (c)  Notice under Subsection (a) or (b) must be made by

14-18    personal delivery or by mail to the last address given to the

14-19    department by the person.

14-20          (d)  The department may provide that a revocation or

14-21    suspension takes effect on receipt of notice under Subsection (b)

14-22    if the department finds that the action is necessary to prevent or

14-23    remedy a threat to public health, safety, or welfare.  Violations

14-24    that present a threat to public health, safety, or welfare include:

14-25                (1)  issuing an inspection certificate with knowledge

14-26    that the issuance is in violation of this chapter or rules adopted

14-27    under this chapter;

 15-1                (2)  falsely or fraudulently representing to the owner

 15-2    or operator of a vehicle that equipment inspected or required to be

 15-3    inspected must be repaired, adjusted, or replaced for the vehicle

 15-4    to pass an inspection;

 15-5                (3)  issuing an inspection certificate:

 15-6                      (A)  without authorization to issue the

 15-7    certificate; or

 15-8                      (B)  without inspecting the vehicle;

 15-9                (4)  issuing an inspection certificate for a vehicle

15-10    with knowledge that the vehicle has not been repaired, adjusted, or

15-11    corrected after an inspection has shown a repair, adjustment, or

15-12    correction to be necessary;

15-13                (5)  knowingly issuing an inspection certificate:

15-14                      (A)  for a vehicle without conducting an

15-15    inspection of each item required to be inspected; or

15-16                      (B)  for a vehicle that is missing an item

15-17    required to be inspected or that has an item required to be

15-18    inspected that is not in compliance with state law or department

15-19    rules;

15-20                (6)  refusing to allow a vehicle's owner to have a

15-21    qualified person of the owner's choice make a required repair,

15-22    adjustment, or correction;

15-23                (7)  charging for an inspection an amount greater than

15-24    the authorized fee;

15-25                (8)  a violation of Subchapter F;

15-26                (9)  a violation of Section 548.603; or

15-27                (10)  a conviction of a felony or a Class A or B

 16-1    misdemeanor that directly relates to or affects the duties or

 16-2    responsibilities of a vehicle inspection station or inspector or a

 16-3    conviction of a similar crime under the jurisdiction of another

 16-4    state or the federal government.

 16-5          (e)  For purposes of Subsection (d)(10), a person is

 16-6    convicted of an offense if a court enters against the person an

 16-7    adjudication of the person's guilt including an order of probation

 16-8    or deferred adjudication.

 16-9          (f)  To obtain an administrative hearing on a denial,

16-10    suspension, or revocation under this section, a person must submit

16-11    a written  request for a hearing to the director not later than the

16-12    20th day after the date notice is delivered personally or is mailed

16-13    [given in person or is deposited in the United States mail as

16-14    provided by Subsection (a)].

16-15          (g) [(c)]  If the director receives a timely request under

16-16    Subsection (f), the director shall provide the person with an

16-17    opportunity for a hearing  as soon as practicable.  A hearing on a

16-18    revocation or suspension under Subsection (d) that takes effect on

16-19    receipt of the notice must be held not later than 14 days after the

16-20    department receives the request for hearing.  The revocation or

16-21    suspension continues in effect until the hearing is completed if

16-22    the hearing is continued beyond the 14-day period:

16-23                (1)  at the request of the inspector or inspection

16-24    station; or

16-25                (2)  on a finding of good cause by a judge,

16-26    administrative law judge, or hearing officer.

16-27          (h)  If the director does not receive a timely request under

 17-1    Subsection (f), the director may deny the application, revoke or

 17-2    suspend a certificate, or sustain the revocation or suspension of a

 17-3    certificate [act] without a hearing.

 17-4          (i)  Except as provided by Subsection (g), the [(d)  The]

 17-5    hearing must be held not earlier than the 11th day after the date

 17-6    written notice of the hearing and [, including] a copy of the

 17-7    charges[,] is given to the person by personal service or by

 17-8    certified mail to the last address given to the department by the

 17-9    person.

17-10          (j) [(e)]  The director or a person designated by the

17-11    director shall conduct the hearing and may administer oaths and

17-12    issue subpoenas for the attendance of witnesses and the production

17-13    of relevant books, papers, or documents.  If the hearing is

17-14    conducted by a person designated by the director, the director may

17-15    take action under this section on a recommendation of the

17-16    designated person.

17-17          (k) [(f)]  On the basis of the evidence submitted at the

17-18    hearing, the director may deny the application or revoke or suspend

17-19    the certificate.

17-20          (l)  If in conducting a hearing under this section an

17-21    administrative law judge of the State Office of Administrative

17-22    Hearings makes a proposal for a decision to deny an application or

17-23    to suspend or revoke a certificate, the administrative law judge

17-24    shall include in the proposal a finding of the costs, fees,

17-25    expenses, and reasonable and necessary attorney's fees the state

17-26    incurred in bringing the proceeding.  The director may adopt the

17-27    finding and make the finding a part of the final order entered in

 18-1    the proceeding.  Proceeds collected from a finding made under this

 18-2    subsection shall be deposited in a special account in the general

 18-3    revenue fund that may be appropriated only to the attorney general.

 18-4          SECTION 12.  Section 548.505, Transportation Code, is amended

 18-5    to read as follows:

 18-6          Sec. 548.505.  EMISSIONS-RELATED INSPECTION FEE.  (a)  The

 18-7    department by rule may impose [commission may by rule establish] an

 18-8    inspection fee for a vehicle inspected under Section 548.301(a) in

 18-9    addition to the fee provided by Section 548.501, 548.502, [or]

18-10    548.503, or  548.504.  A fee imposed under this subsection must be

18-11    based on the costs of:

18-12                (1)  producing certificates;

18-13                (2)  providing inspections; and

18-14                (3)  administering the program [for a vehicle inspected

18-15    under Section 548.301(a)].

18-16          (b)  The department may provide a maximum fee for an

18-17    inspection under this subchapter.  The department may not set a

18-18    minimum fee for an inspection under this subchapter. [The

18-19    additional fee may not exceed:]

18-20                [(1)  $5 if only a parameter program is established; or]

18-21                [(2)  $10 if a program other than the parameter program

18-22    is established under requirements of the United States.]

18-23          [(c)  If an inspection under Section 548.501 or Section

18-24    548.503 is not performed when an inspection is performed under

18-25    Section 548.301(a), the only fee due is the fee authorized by this

18-26    section.]

18-27          [(d)  The conservation commission shall:]

 19-1                [(1)  pay to the department an amount equal to the cost

 19-2    of producing certificates provided to centralized reinspection

 19-3    stations under Section 548.304;]

 19-4                [(2)  establish a reinspection fee; and]

 19-5                [(3)  implement procedures governing the tracking of

 19-6    certificates and the refunding of the cost of unissued certificates

 19-7    provided to reinspection stations.]

 19-8          SECTION 13.  Section 548.601, Transportation Code, is amended

 19-9    to read as follows:

19-10          Sec. 548.601.  OFFENSE GENERALLY.  (a)  A person, including

19-11    an inspector or an inspection station, [who operates a motor

19-12    vehicle in violation  of this chapter or a rule adopted under this

19-13    chapter] commits an offense if the person:

19-14                (1)  issues an inspection certificate with knowledge

19-15    that the issuance is in violation of this chapter or rules adopted

19-16    under this chapter;

19-17                (2)  falsely or fraudulently represents to the owner or

19-18    operator of a vehicle that equipment inspected or required to be

19-19    inspected must be repaired, adjusted, or replaced for the vehicle

19-20    to pass an inspection;

19-21                (3)  misrepresents:

19-22                      (A)  material information in an application in

19-23    violation of Section 548.402 or 548.403; or

19-24                      (B)  information filed with the department under

19-25    this chapter or as required by department rule;

19-26                (4)  issues an inspection certificate:

19-27                      (A)  without authorization to issue the

 20-1    certificate; or

 20-2                      (B)  without inspecting the vehicle;

 20-3                (5)  issues an inspection certificate for a vehicle

 20-4    with knowledge that the vehicle has not been repaired, adjusted, or

 20-5    corrected after an inspection has shown a repair, adjustment, or

 20-6    correction to be necessary;

 20-7                (6)  knowingly issues an inspection certificate:

 20-8                      (A)  for a vehicle without conducting an

 20-9    inspection of each item required to be inspected; or

20-10                      (B)  for a vehicle that is missing an item

20-11    required to be inspected or that has an item required to be

20-12    inspected that is not in compliance with state law or department

20-13    rules;

20-14                (7)  refuses to allow a vehicle's owner to have a

20-15    qualified person of the owner's choice make a required repair,

20-16    adjustment, or correction; or

20-17                (8)  charges for an inspection an amount greater than

20-18    the authorized fee.

20-19          (b)  Unless otherwise specified in this chapter, an offense

20-20    under this section is a Class C [that is a] misdemeanor.

20-21          (c)  A designated representative of the department may issue

20-22    a notice of an offense or a notice to appear to a person, including

20-23    an inspector or inspection station, who violates this chapter or a

20-24    rule adopted under this chapter.

20-25          [(b)  This section does not apply to operation of a vehicle

20-26    that is:]

20-27                [(1)  licensed in another state; and]

 21-1                [(2)  being temporarily and legally operated under a

 21-2    reciprocity agreement.]

 21-3          SECTION 14.  Section 548.602(a), Transportation Code, is

 21-4    amended to read as follows:

 21-5          (a)  After the fifth day after the date of expiration of the

 21-6    period designated for inspection, a person may not operate:

 21-7                (1)  a motor vehicle registered in this state unless a

 21-8    current [an] inspection certificate is displayed on the vehicle; or

 21-9                (2)  a commercial motor vehicle registered in this

21-10    state unless it is equipped as required by federal motor carrier

21-11    safety regulations and displays an inspection certificate issued

21-12    under the program established under Section 548.201.

21-13          SECTION 15.  Section 548.603, Transportation Code, is amended

21-14    to read as follows:

21-15          Sec. 548.603.  [DISPLAY OF] FICTITIOUS OR COUNTERFEIT

21-16    INSPECTION CERTIFICATE OR INSURANCE DOCUMENT.  (a)  A person

21-17    commits an offense if the person:

21-18                (1)  displays [or causes or permits to be displayed] an

21-19    inspection certificate or insurance document knowing that the

21-20    certificate or document is counterfeit, tampered with, altered, [it

21-21    to be] fictitious, issued for  another vehicle, or issued in

21-22    violation of:

21-23                      (A)  this chapter, rules adopted under this

21-24    chapter, or other law of this state; or

21-25                      (B)  a law of another state, the United States,

21-26    Mexico, a Mexican state, Canada, or a province of Canada; [without

21-27    the required inspection having been made; or]

 22-1                (2)  transfers an inspection certificate from a

 22-2    windshield or location to another windshield or location;

 22-3                (3)  with intent to circumvent the emissions inspection

 22-4    requirements seeks an inspection of a vehicle at a station not

 22-5    certified to perform an emissions inspection if the person knows

 22-6    that the vehicle is required to be inspected under Section 548.301;

 22-7                (4)  knowingly does not comply with an emissions

 22-8    inspection requirement for a vehicle; or

 22-9                (5)  displays on a vehicle an inspection certificate

22-10    that was obtained knowing that the vehicle does not meet all

22-11    emissions inspection requirements for the vehicle.

22-12          (b)  A person commits an offense if the person:

22-13                (1)  makes or possesses, with the intent to sell,

22-14    circulate, or pass, a counterfeit inspection certificate or

22-15    insurance document; or

22-16                (2)  possesses any part of a stamp, dye, plate,

22-17    negative, machine, or other device that is used or designated for

22-18    use in making a counterfeit inspection certificate or insurance

22-19    document.

22-20          (c)  The owner of a vehicle commits an offense if the owner

22-21    knowingly allows the vehicle to be registered or [:]

22-22                [(1)  is] operated while the vehicle [or parked on a

22-23    public highway; and]

22-24                [(2)]  displays an inspection certificate in violation

22-25    of Subsection (a).

22-26          (d)  An [(c)  Except as provided by Subsection (d), an]

22-27    offense under Subsection (a) or (c) is a Class B misdemeanor.  An

 23-1    offense under Subsection (b) is a third degree felony unless the

 23-2    person acts with the intent to defraud or harm another person, in

 23-3    which event the offense is a second degree felony.

 23-4          (e)  In this section:

 23-5                (1)  "Counterfeit" means an imitation of a document

 23-6    that is printed, engraved, copied, photographed, forged, or

 23-7    manufactured by a person not authorized to take that action under:

 23-8                      (A)  this chapter, rules adopted under this

 23-9    chapter, or other law of this state; or

23-10                      (B)  a law of another state, the United States,

23-11    Mexico, a Mexican state, Canada, or a province of Canada.

23-12                (2)  "Inspection certificate" means a document that is

23-13    printed, manufactured, or made by the department or an authorized

23-14    agent of the department for issuance after a vehicle passes an

23-15    inspection performed under this chapter.

23-16                (3)  "Insurance document" means a standard proof of

23-17    motor vehicle insurance coverage that is:

23-18                      (A)  in a form prescribed by the Texas Department

23-19    of Insurance or by a similarly authorized board, agency, or

23-20    authority of another state; and

23-21                      (B)  issued by an insurer or insurer's agent who

23-22    is authorized to write motor vehicle insurance coverage.

23-23                (4)  "Person" includes an inspection station or

23-24    inspector [punishable by a fine of not less than $100 or more than

23-25    $200.]

23-26          [(d)  An offense under Subsection (a)  is a Class B

23-27    misdemeanor if:]

 24-1                [(1)  the certificate is a motor vehicle emissions

 24-2    inspection certificate; and]

 24-3                [(2)  the owner of the vehicle knows the certificate is

 24-4    in violation of Subsection (a)].

 24-5          (f) [(e)]  A motor vehicle on which [is displayed] a vehicle

 24-6    emissions inspection certificate is displayed in violation of

 24-7    Subsection (a) and that is operated or parked on a public roadway

 24-8    may be impounded by a peace officer or other authorized employee of

 24-9    this state or a political subdivision of this state in which the

24-10    vehicle is operated or parked.

24-11          SECTION 16.  Subchapter C, Chapter 552, Government Code, is

24-12    amended by adding Section 552.127 to read as follows:

24-13          Sec. 552.127.  MOTOR VEHICLE INSPECTION INFORMATION.  A

24-14    record created during a motor vehicle emissions inspection under

24-15    Subchapter F, Chapter 548, Transportation Code, that relates to an

24-16    individual vehicle or owner of an individual vehicle is excepted

24-17    from the requirements of Section 552.021.

24-18          SECTION 17.  (a)  In addition to the substantive changes made

24-19    by this Act, this Act conforms:

24-20                (1)  Section 548.001, Transportation Code, to Section

24-21    25, Chapter 705, Acts of the 74th Legislature, Regular Session,

24-22    1995;

24-23                (2)  Section 548.301, Transportation Code, to Section

24-24    8, Chapter 34, Acts of the 74th Legislature, Regular Session, 1995;

24-25                (3)  Section 548.304, Transportation Code, to Sections

24-26    6 and 8, Chapter 34, Acts of the 74th Legislature, Regular Session,

24-27    1995; and

 25-1                (4)  Section 548.603, Transportation Code, to Section

 25-2    7, Chapter 34, Acts of the 74th Legislature, Regular Session, 1995.

 25-3          (b)  To the extent of any conflict, this Act prevails over

 25-4    another Act of the 75th Legislature, Regular Session, 1997, that

 25-5    relates to nonsubstantive additions to and corrections in enacted

 25-6    codes, except for an amendment to Section 548.001(5),

 25-7    Transportation Code, made by such an Act.

 25-8          SECTION 18.  The following are repealed:

 25-9                (1)  Sections 382.037(a-1) and 382.0371, Health and

25-10    Safety Code;

25-11                (2)  Sections 548.256(c) and 548.305, Transportation

25-12    Code;

25-13                (3)  Section 25, Chapter 705, Acts of the 74th

25-14    Legislature, Regular Session, 1995; and

25-15                (4)  Sections 6, 7, and 8, Chapter 34, Acts of the 74th

25-16    Legislature, Regular Session, 1995.

25-17          SECTION 19.  (a)  Sections 1-18 of this Act take effect

25-18    September 1, 1997, or 60 days after the effective date of this

25-19    section, whichever is later.

25-20          (b)  The changes in law made by this Act apply only to an

25-21    offense committed or a violation of a statute or agency rule that

25-22    occurs on or after the effective date of the provision of this Act

25-23    that makes the changes in law.  For purposes of this section, an

25-24    offense occurs, or a violation of a statute or agency rule occurs,

25-25    before the effective date of this Act if any element of the offense

25-26    or violation occurs before that date, and the former law is

25-27    continued in effect for that purpose.

 26-1          (c)  This section takes effect immediately.

 26-2          SECTION 20.  The importance of this legislation and the

 26-3    crowded condition of the calendars in both houses create an

 26-4    emergency and an imperative public necessity that the

 26-5    constitutional rule requiring bills to be read on three several

 26-6    days in each house be suspended, and this rule is hereby suspended,

 26-7    and that this Act take effect and be in force according to its

 26-8    terms, and it is so enacted.